Prepaid Cards and Back-to-School Go Hand in Hand
August 24, 2017
Even though the summer weather is still here, more than 20 million students are preparing to head back to college for the fall semester. Whether freshmen or seniors, living on-campus or off, majoring in English or biology, there’s one tool that can benefit them all: prepaid cards.
For many young adults credit cards might not be a good option because they have no credit history. Traditional bank accounts might be too expensive for them because they cannot maintain a minimum balance. Prepaid cards offer the right combination of financial flexibility and control. Not only can young adults easily participate in our card-based, digital economy, but they can also do so while managing their spending.
But the benefits of prepaid cards don’t stop there. With a prepaid card:
- Sticking to a budget is easy. Unlike credit cards with high spending limits, prepaid cards typically cannot be used to spend more than the amount of money on the card. This minimizes the risk of overspending and prevents accruing interest-bearing debt.
- Money can be added in a pinch. If a student finds him or herself in a pinch, cards can be easily refilled online or at many retail stores—with immediate access to that money. Parents can send money without incurring transfer fees, and students can turn cash from jobs into digital money as soon as they need it.
- Young adults can find one to fit their lifestyle. There are a wide range of prepaid card options, available at a variety of price points and with a diverse selection of features. Students studying abroad may prioritize cards with limited foreign transaction fees, while others may want a card that has bill pay. Many cards carry Reg E protections and FDIC insurance, so money loaded onto cards is safe and provides a flexible, but controllable spending tool.
To learn more about prepaid card use by young adults, check out our infographic.